Key Bitcoin onchain signal may mark BTC’s next demand revival

Bitcoin remains pinned below $65,000 as random bouts of intense selling pressure persist, but one onchain indicator has stabilized, providing insight into when spot market demand may return.

Onchain data tracking Bitcoin’s (BTC) investor profitability has dropped back toward the long-term average, indicating a possible valuation reset. At the same time, crypto exchange order flow shows an easing of aggressive selling pressure, with the spot cumulative volume delta (CVD) rising marginally even as the spot trading volume dropped to $6 billion from $7.6 billion. 

These changes are shaping the expectations around when stronger spot demand may return for BTC and whether or not this would lead to a trend reversal.

Glassnode analyst Chris Beamish said that the Bitcoin market value to realized value (MVRV) ratio has normalized after the prior +1 standard deviation extremes were fully reset.

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